Helpful next steps towards Dutch CSRD implementation: retroactive effect abandoned

The revised draft Decree will implement the Corporate Sustainability Reporting Directive (CSRD), as amended by the Omnibus Package. Omnibus II postponed the reporting requirements for certain categories of companies by two years and Omnibus I narrowed the scope of the CSRD and simplified its requirements. Please also be referred to our earlier publication The Omnibus saga comes to an end (for now): how the Final Omnibus reshapes the CSRD and CSDDD.

No retroactive effect

The government had previously proposed applying certain implementing provisions retroactively from financial year 2024. In its advice of 3 June 2026 on the third memorandum of amendment to the accompanying implementation bill (the Bill), the Advisory Division of the Council of State (Raad van State, Council of State) questioned the justification for this approach. It recommended providing a sufficiently robust explanation of why retroactive application was necessary and appropriate, or otherwise abandoning it.

The Council of State also questioned the necessity and effectiveness of the proposed ‘repair clause’. This provision was intended to address uncertainties for companies and auditors that had already reported or provided assurance voluntarily before completion of the Dutch implementation process. The Council of State recommended further justification and, if necessary, reconsideration of the provision.

According to the cabinet decision, the government has decided to remove both the proposed retroactive application and the repair clause. Its announced approach is therefore not to impose CSRD reporting obligations retrospectively for financial years 2024 to 2026 through the Dutch implementing legislation.

Implications for companies

For companies potentially within the revised scope, financial year 2027 is now the key reference point for preparations under the announced Dutch approach. Companies should review their reporting timetable against the revised draft Decree once published, paying particular attention to its scope, exemptions and transitional arrangements.

Companies that have already published CSRD-aligned sustainability reports should also monitor the revised texts. The removal of the repair clause means that the proposed statutory mechanism addressing those earlier reports will not be introduced. However, without the revised documents, the precise legal consequences should not be assumed. In particular, the cabinet decision should not be read as a general release from other reporting obligations or commitments.

Next steps

The State Secretary for Justice and Security will submit the revised draft Decree to both Houses of the Dutch Parliament under the statutory pre-scrutiny procedure (voorhangprocedure). If this does not result in substantial amendments, the State Secretary will then arrange for the draft to be referred to the Advisory Division of the Council of State for advice.

The separate implementation bill, pending before the House of Representatives under parliamentary dossier 36 678, must also complete the legislative process. That bill primarily addresses assurance and auditor-related requirements, while the substantive sustainability reporting obligation is to be established through the Decree.

This Cabinet approval therefore does not complete the Dutch implementation of the CSRD. The revised documents will be important for assessing how the announced approach is translated into the Dutch legal framework.

We will provide a further update once the revised draft Decree and accompanying explanatory documents have been published.